ONE OF Ireland’s best known spread betting companies, Delta Index, has been acquired by UK spread betting firm Gekko Global Markets (GGM).
An estimated 4,000 customer accounts, some of which are dormant, will be administered by London-based GGM and will be regulated by the Financial Services Authority (FSA) in Britain. The transfers are expected to be completed by the end of the year.
The Delta Index brand is set to remain.
A spokesman for Delta Index confirmed that the company has signed a “revenue share” agreement with GGM. He said that customers would not be affected by the move, though there would be redundancies and some staff will move to the UK.
Delta Index, which also offers cfd (contract for difference) products, employs 17 people, compared to a staff of around 35 two years ago.
Delta Index has been on the market for the past year. The bidding process stepped up over the last month, with interested parties requested to lodge bids in the last few weeks.
It is believed that a number of spreadbetting companies, including its main rival, Irish company Marketspreads, looked at buying the company.
A spokesman for GGM said yesterday that the company had been keen to establish a presence in Dublin and remains committed to the Irish market.
Delta Index was founded in 2001 by Conor O’Neill and Michael O’Shea.
Non-executive directors include Dr Seán Baker, co-founder of Iona Technologies and Dermot ODonoghue former head of AIB Group Treasury.
A spokesman for Delta Index said yesterday that there will be no impact on customers.
“The partnership with GGM will deliver an enhanced range of services to clients including a 24 hour dealing service, more competitive trading costs, improved trade execution and enhanced trading technology” he said.
The most recently-filed accounts for Delta Index show that the company booked a loss of €630,000 in 2009, an improvement on the €950,000 reported in 2008. Last year the company said it had returned to profit in the first half of 2010, the first time since 2007.
A spokesman for Delta Index said yesterday that it had been “a tough few years for business” in light of risk-aversion in the market.
